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An Ordinance Approving The Transfer And Reallocation Of Volume Cap In Connection With Private Activity Bond Issues, And Related Matters
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Introduction
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Staff are seeking approval of an ordinance to execute the transfer of Private Activity Bond Volume Cap and supporting documents.
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Recommended Action
Approve the ordinance.
Prior Board Action
The Board has taken the following prior action(s):
* ID 26-142: Study Session on Homeownership Programs Part 2
* ID 25-185: Study Session on Homeownership Programs
* RES 24-167: A Resolution Adopting the Strategic Vision for Housing Plan Prepared by the Metropolitan Mayors Caucus
* RES 24-115: A Resolution Adopting the 2024-2025 Village Board Goals as Reviewed at the July 10, 2023, July 11, 2023, July 17, 2023 and September 14, 2023 Board Meetings
Background
At the Board's February 24, 2026, study session on homeownership, the Board gave staff feedback that it was supportive of the Village allocating its Private Activity Bond Cap to the Illinois Assist Mortgage Credit Certificate Homeownership program to provide mortgage credit certificates to make homeownership more affordable for low- to moderate-income first-time homebuyers and veterans purchasing in Oak Park.
A Mortgage Credit Certificate (MCC) is a federal tax credit program that helps make homeownership more affordable for low- to moderate-income first-time homebuyers and veterans. The homebuyer can receive a federal tax credit equal to a percentage of the interest they pay on their home loan each year, up to a maximum of $2,000. The remaining mortgage interest paid may still be calculated as an itemized deduction. The credit can then be used to reduce the homebuyer's federal income tax liability each year. Homebuyers can use the dollar-for-dollar credit each year for the life of the original mortgage, provided they continue to live in the home.
The MCC program includes both income and purchase price limits. T...
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